SCMN 2150 STUDY GUIDE 2026 EXAM QUESTIONS AND
ANSWERS SCORED A+
✔✔direct delivery, cross dock, or distribution: which has the maximum inventory? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has minimal inventory? - ✔✔direct
delivery
✔✔direct delivery, cross dock, or distribution: which has no backup safety stock? -
✔✔direct delivery and cross dock
✔✔direct delivery, cross dock, or distribution: which has protected safety stock? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has high handling cost? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has no facility investment? -
✔✔direct delivery
✔✔direct delivery, cross dock, or distribution: which has low facility investment? -
✔✔cross dock
✔✔direct delivery, cross dock, or distribution: which has the lowest handling cost? -
✔✔direct delivery
✔✔direct delivery, cross dock, or distribution: which has very high facility investment? -
✔✔distribution center
✔✔What is capacity planning? Why is it used? - ✔✔the process of establishing the
output rate that can be achieved. it is used to match capacity and demand, then figure
out errors in their plan
✔✔What is the equation for utilization? - ✔✔(actual output / capacity) x 100%
✔✔What are the two major categories of forecasting? - ✔✔qualitative method and
quantitative method
✔✔What is the qualitative method? - ✔✔based on human judgement, opinions,
subjective and non-mathematical, can incorporate latest changed in the environment
and "inside information", can bias the forecast and reduce forecast accuracy.
, ✔✔What is the quantitative method? - ✔✔based on mathematics; quantitative in nature,
consistent and objective; able to consider much information and data at one time. Often
quantifiable data are not available and it is only as good as the data on which they are
based
✔✔T/F Data = historical pattern + random variation - ✔✔true
✔✔T/F random variation can be predicted - ✔✔false
✔✔What are the historic patterns to be forecasted? - ✔✔level (long term average),
trend (data exhibits an increasing or decreasing pattern), seasonality (any pattern that
repeats itself and is a constant length), and a cycle (pattern created by economic
fluctuations)
✔✔Level/Horizontal pattern chart - ✔✔data follows a horizontal pattern around the
mean (continuously going up and down between each period)
✔✔Trend pattern chart - ✔✔data is progressively increasing or decreasing over time
✔✔Seasonal Pattern chart - ✔✔data exhibits a regularly repeating pattern (increasing
and decreasing over multiple periods of time)
✔✔Cycle pattern chart - ✔✔data increases or decreasing over time
✔✔What is the definition for simple moving average? - ✔✔the simple moving average
model assumes an average is a good estimator of future behavior
✔✔What is weighted moving average? - ✔✔permits an unequal weighing on period
time periods
✔✔What is the exponential smoothing model? - ✔✔the most recent observations might
have the highest predictive value, and we should give more weight to the more recent
time periods when forecasting
✔✔Know the formulas for simple moving average, weighted moving average,
exponential smoothing model, and forecast error - ✔✔.
✔✔What does over forecast and under forecast mean? - ✔✔over forecast = negative
errors
under forecast = positive errors
✔✔What is MRP? - ✔✔material requirements planning, it is a tool to deal with
over/under purchasing of key input items (materials and subassemblies)
ANSWERS SCORED A+
✔✔direct delivery, cross dock, or distribution: which has the maximum inventory? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has minimal inventory? - ✔✔direct
delivery
✔✔direct delivery, cross dock, or distribution: which has no backup safety stock? -
✔✔direct delivery and cross dock
✔✔direct delivery, cross dock, or distribution: which has protected safety stock? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has high handling cost? -
✔✔distribution center
✔✔direct delivery, cross dock, or distribution: which has no facility investment? -
✔✔direct delivery
✔✔direct delivery, cross dock, or distribution: which has low facility investment? -
✔✔cross dock
✔✔direct delivery, cross dock, or distribution: which has the lowest handling cost? -
✔✔direct delivery
✔✔direct delivery, cross dock, or distribution: which has very high facility investment? -
✔✔distribution center
✔✔What is capacity planning? Why is it used? - ✔✔the process of establishing the
output rate that can be achieved. it is used to match capacity and demand, then figure
out errors in their plan
✔✔What is the equation for utilization? - ✔✔(actual output / capacity) x 100%
✔✔What are the two major categories of forecasting? - ✔✔qualitative method and
quantitative method
✔✔What is the qualitative method? - ✔✔based on human judgement, opinions,
subjective and non-mathematical, can incorporate latest changed in the environment
and "inside information", can bias the forecast and reduce forecast accuracy.
, ✔✔What is the quantitative method? - ✔✔based on mathematics; quantitative in nature,
consistent and objective; able to consider much information and data at one time. Often
quantifiable data are not available and it is only as good as the data on which they are
based
✔✔T/F Data = historical pattern + random variation - ✔✔true
✔✔T/F random variation can be predicted - ✔✔false
✔✔What are the historic patterns to be forecasted? - ✔✔level (long term average),
trend (data exhibits an increasing or decreasing pattern), seasonality (any pattern that
repeats itself and is a constant length), and a cycle (pattern created by economic
fluctuations)
✔✔Level/Horizontal pattern chart - ✔✔data follows a horizontal pattern around the
mean (continuously going up and down between each period)
✔✔Trend pattern chart - ✔✔data is progressively increasing or decreasing over time
✔✔Seasonal Pattern chart - ✔✔data exhibits a regularly repeating pattern (increasing
and decreasing over multiple periods of time)
✔✔Cycle pattern chart - ✔✔data increases or decreasing over time
✔✔What is the definition for simple moving average? - ✔✔the simple moving average
model assumes an average is a good estimator of future behavior
✔✔What is weighted moving average? - ✔✔permits an unequal weighing on period
time periods
✔✔What is the exponential smoothing model? - ✔✔the most recent observations might
have the highest predictive value, and we should give more weight to the more recent
time periods when forecasting
✔✔Know the formulas for simple moving average, weighted moving average,
exponential smoothing model, and forecast error - ✔✔.
✔✔What does over forecast and under forecast mean? - ✔✔over forecast = negative
errors
under forecast = positive errors
✔✔What is MRP? - ✔✔material requirements planning, it is a tool to deal with
over/under purchasing of key input items (materials and subassemblies)
